Published on 14 Feb 2024 on Zacks via Yahoo Finance

DigitalOcean Holdings, Inc. (DOCN) Earnings Expected to Grow: Should You Buy?

Wall Street expects a year-over-year increase in earnings on higher revenues when DigitalOcean Holdings, Inc. (DOCN) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 21. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.